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In this work, we demonstrated the ability of the cyanobacterium <i>Pseudanabaena/Limnothrix</i> sp. to produce ultra-small silver nanoparticlesin the forms of metallic silver (Ag⁰) and silver oxides (Ag_xO_y) via a facile green synthetic process. The biological compounds in the cyanobacterial cellular extract acted both as reducing agents for silver ions and functional stabilizing agents for the silver nanoparticles. Furthermore, the antibacterical activity of the as-synthesized nanoparticles against Gram-negative <i>Escherichia coli</i> and Gram-positive <i>Corynebacterium glutamicum</i> bacterial cells was evaluated. The experimental results revealed a remarkable bactericidal activity of the nanoparticles that was both time-dependent and dose-dependent. In addition to their excellent bactericidal properties, the developed nanoparticles can be used as nanosupports in various environmental, biological, and medical applications.